TOKYO, April 18 Japanese government bond prices
fell across the board on Tuesday as the market tracked a broad
retreat by U.S. Treasuries.
The benchmark 10-year JGB yield was up 1
basis point at 0.010 percent after rising to as high as 0.015
percent as prices eased. The 30-year yield
climbed 2.5 basis points to 0.760 percent, after hitting a
three-month low of 0.735 percent on Monday.
An auction of five-year JGBs drew sufficient demand after
the finance ministry reduced their issuance amount to 2.2
trillion yen ($20.2 billion) from 2.4 trillion yen and tightened
supply. The bid-to-cover ratio, a gauge of demand, at Tuesday's
auction rose to 3.28 from 2.86 at the previous sale in March.
But another measure of demand showed that five-year JGBs may
have become too expensive for some buyers following the recent
fall in their yields to five-month lows as prices rose.
The tail, the difference between the lowest and average
accepted auction prices, was unchanged at a relatively wide
0.04. A shorter tail generally indicates stronger demand.
U.S. Treasury yields rose from five-month lows on Monday as
Wall Street shares gained, reducing demand for safe-haven debt.
($1 = 108.9100 yen)
(Reporting by the Tokyo markets team)